Reply #29: You shouldn't overlook the predatory aspect of this [View All]

[Juche]

Banks preyed on blacks and latinos to drive them into subprime mortgages.

http://www.consumeraffairs.com/news04/2006/06/crl_predatory_study.html

The most extensive study of its kind shows that even after controlling for differences such as credit scores and the amount of the down payment, African-Americans and Latinos still wind up with a disproportionate share of expensive loans.

Examining 50,000 subprime loans, the Center's researchers found these groups were almost a third more likely to get a high-priced loan than white borrowers with the same credit profile.



if you read Malcolm Gladwell's book 'blink' he talks about how there is an unspoken assumption that blacks and women are 'suckers' when they walk into a used car lot while white men are considered financially astute. As a result blacks and women are talked into loans that are too shoddy for a white male to get talked into.

Point being, you can't overlook the predatory aspect of some of these loans and the fact that alot of people who qualified for better loans were talked into subprimes. Eliot Spitzer tried to force the US gov to enforce regulations, but the Bush admin stopped him.